Role of broker’s information transparency in determining individual investor’s financial wellbeing: A transformative service research (TSR) perspective

Abstract

The basic objective of this study is to determine how broker’s information transparency trigger individual investor’s financial wellbeing. The study applies transformative service research (TSR) perspective to test the proposed model in the context of a developing economy. The deduced model explores how financial risk tolerance and financial self-efficacy mediate relationship between broker information transparency and perceived financial wellbeing. Accordingly, this study examines how underlying mechanism of broker’ information transparency is being moderated through trust. Primary data has been collected from individual investors engaged in stock trading at Pakistan stock exchange (PSX). Statistical test such as multiple regression, moderation and serial mediation analysis has been conducted to testify the proposed hypothesis. The findings show that broker’s information transparency harness the investor perceived financial wellbeing. Furthermore, broker information transparency predicts financial wellbeing because information transparency positively affects affective attitude toward the broker and increased financial self-efficacy of the investors to deal with financial challenges.